Santos and partners secure gas exploration rights in Queensland, Australia

Santos, PETRONAS, Total, KOGAS and APLNG have secured rights to explore gas in Bowen Basin, Australia.

The companies won an auction for the 86km² PRL2016/17-1A block, which is located west of Santos’ Arcadia gas field in the Bowen Basin and 65km north of Injune, South West Queensland.

Santos’ exploration and new developments executive vice-president Bill Ovenden said: “Being adjacent to the Santos-planned Arcadia project means the company will be able to leverage existing infrastructure, reduce development costs and produce more gas.

“Access to new and existing supply sources in Queensland and new supply sources in New South Wales and the Northern Territory is critically important to enable us to continue to deliver competitive gas to the east coast domestic gas market.”

The awarded rights are part of Queensland’s annual exploration programme, which involves releasing land for exploration of petroleum and gas.

Gas produced from the acreage will be used to meet 11% of domestic demand for this year as projected by the Australian Competition and Consumer Commission (ACCC).

Queensland Natural Resources, Mines and Energy Minister Dr Anthony Lynham said: “This area holds significant gas resources, which will further add to the gas being produced by workers here in Queensland and made available for domestic use and export markets.”

The new JV will be owned by Santos with a 22.85% interest, Petronas with 20.94%, Total with 20.94%, Kogas with 11.42% and APLNG with 23.85%.